This month has seen major breakthroughs in the world of cryptocurrency.
The Financial Sector Conduct Authority (FSCA) declared crypto assets to be financial products late last week. And Mastercard has introduced Crypto Source, a new programme to enable financial institutions to bring secure crypto trading capabilities and services to their customers.
But which country has the highest number of crypto owners?
According to Statista data, India has the highest number of cryptocurrency users globally, with 134 million this year.
According to a statement by TradingPlatforms, the US crypto market is expected to account for more than half of global crypto transaction value this year, or $18.5 billion (about R400bn). India will see the second-largest transaction value, of $2.4bn.
“Statista expects the adoption of cryptocurrencies to continue growing on a global scale. Recent estimates show 257.2 million crypto users worldwide, representing 3.2% of the world’s population. In 2023, this figure is expected to grow to 293.6 million,” says Jastra Kranjec, a writer and an analyst at TradingPlatforms.
FSCA recognises cryptocurrency as an asset – this is what some investors have to say
Now that the FSCA has said that cryptocurrency is an asset and must be regulated in South Africa, investors have given their insight.
Pet Rock Investments said the “change brings crypto assets into the scope of the regulators which will benefit customers by providing the same level of oversight for crypto assets as any other financial product offered by registered financial service providers”.
The investment firm said South Africa had become one of the leading countries to embrace cryptocurrencies, unlocking immediate and potential benefits across the financial services industry.
According to a recent survey by Pet Rock Investments, advisers see crypto being a key part of future planning in the next 12 months, with 72% of advisers planning to allocate crypto in client accounts.
Marius Reitz, of Luno GM, Africa, said: “Luno is delighted to see the development of the regulatory framework in South Africa progressing, and we look forward to further progress in the near future.
“Another key benefit is that it should allow financial advisers to formally advise their clients on crypto investments. Until now, financial advisers could not provide advice on unregulated investment opportunities.”
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